Dealing a fresh blow to JSW Steel in the Bhushan Power and Steel (BPSL) insolvency case before the Supreme Court (SC), the banks are now demanding that BPSL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) should flow to creditors during the insolvency process.
On July 31, India’s apex court allowed review petitions filed by JSW Steel and lenders in the insolvency case, observing that its earlier judgment needed reconsideration. The top court said liquidation should be a last resort, noting the company now employs 25,000 workers and has seen significant capital infusion and production ramp-up since JSW’s takeover.
Till May, the banks had submitted before the SC that they were open to the EBITDA of BPSL…